The chart below displays the total dollar volume invested and average price per unit on a quarterly basis for all apartment building transactions over $1M in the GTA. Total investment volume in 2018 reached a new high at $2.71B, outpacing 2017 volumes by 77%. Investment volume in the second half of 2018 reached a combined total of $1.87B – more than double the amount of dollar investment than the first half of 2018, 94% higher than the last two quarters of 2017 and over three times the amount of investment seen in Q3-Q4 2016.
Q3 2018 saw investment levels hit $1.27B – the highest quarterly investment activity ever recorded by Altus Group for apartment buildings in the GTA. This marked a 126% upswing in investment volumes since the previous quarter and a 58% rise from the last recorded high of $801M, which occurred in Q1 2004.
After experiencing peaks in both Q1 2016 and Q2 2017, the average price per unit also reached another recorded high by Altus which occurred in Q3 2018, rising to $319,361 per unit.
The chart below displays the total dollar volume invested by region and the average capitalization rate for all apartment building transactions over $1M in the GTA. Metro Region experienced an extremely high volume of investment activity in 2018 at $2.3B, more than doubling the volume since 2017.
Investment in the Metro Region in the second half of 2018 was 169% higher than the last two quarters of 2017.
Investment in the third and fourth quarter of 2018 combined accounted for 85% of total investment activity in the region for the year. Durham Region experienced a significant increase in investment volume, up from $42M in 2017 to $231M in 2018.
After experiencing years of compression, the average cap rate for apartment buildings in the GTA drifted up by 22 basis points since 2017 to 3.98% in 2018.
Maziar Moini, Broker of Record - Home Leader Realty Inc.
300 Richmond St. W., #300, Toronto, ON M5V-1X2
